Description

Aditya Birla Sun Life India GenNext Fund renamed to Aditya Birla Sun Life Consumption Fund with updated asset allocation and rebalancing provisions.

Summary

Aditya Birla Sun Life AMC Limited has announced a fundamental change to their mutual fund scheme, renaming “Aditya Birla Sun Life India GenNext Fund” to “Aditya Birla Sun Life Consumption Fund” effective July 28, 2025. The change includes updated portfolio rebalancing provisions and maintains the same asset allocation structure.

Key Points

  • Scheme name changed from “India GenNext Fund” to “Consumption Fund”
  • Asset allocation remains unchanged: 80-100% equity, 0-20% fixed income
  • Enhanced rebalancing provisions for short-term defensive considerations
  • New passive breach rebalancing timeline of 30 business days
  • Securities lending exposure limited to 20% of net assets (5% per intermediary)
  • Derivatives exposure up to 50% of net assets permitted

Regulatory Changes

  • Updated rebalancing framework aligned with SEBI Master Circular on Mutual Funds dated June 27, 2024
  • Short-term defensive deviations must be rebalanced within 30 calendar days
  • Passive breach deviations require rebalancing within 30 business days
  • Investment Committee can extend rebalancing timeline up to 60 business days with justification

Compliance Requirements

  • AMC must justify any portfolio deviations in writing to Investment Committee
  • Detailed efforts for rebalancing must be documented for extended timelines
  • Compliance with prescribed restrictions and disclosure requirements if rebalancing deadlines are missed

Important Dates

  • Effective Date: Monday, July 28, 2025
  • Rebalancing Timeline: 30 calendar days for defensive deviations, 30 business days for passive breaches
  • Extended Timeline: Up to 60 business days with Investment Committee approval

Impact Assessment

The scheme name change reflects a strategic shift towards consumption-focused investments while maintaining the same risk-return profile. Existing investors will see their holdings automatically transferred to the renamed scheme without any action required. The enhanced rebalancing provisions provide better regulatory compliance and risk management framework.

Impact Justification

Scheme name change affects investor identification but fundamental investment strategy remains similar